Einstein once said that ‘Everything should be made as simple as possible, but not simpler’. This perfectly captures the view that accounting standards should be firmly governed by high-level principles with only the absolute - minimum additional guidance required to make the standard operational. Preparers and auditors, therefore, would need the courage to exercise and defend their judgements in this simplified accounting world. Users and regulators would need the wisdom to accept that there may be more than one answer and over time all parties would have to build the trust that this state of the world implies (from the ICAS 2006b). 

Do you agree? Explain why.